The movie business has changed and that's not good for AMC shareholders
$AMC Entertainment(AMC.US$ stock closed at roughly 15 times it's 52-week low when the market closed on Friday. That's still down more than 100% from its 52-week high of $72.82, but it's still enough to give the money-losing movie theater company a market cap of nearly $15 billion.
Some of those gains have come because the company has become a meme stock and many people bought shares, not because of AMC's merits but because there was heavy short interest in the stock. Others, however, have held onto their shares in the company because they see the movie business making a comeback when the pandemic becomes nothing more than an unpleasant memory.
Basically, a return to normal leaves AMC selling fewer tickets than its needs to make a profit. Ticket sales are, of course, not the only revenue source for the movie theater company but fewer people in the theaters means fewer people to sell popcorn, soda, and whatever else to.
The pandemic accelerated a trend that was already hurting the movie business, When people have the option to watch so much theater-quality television without leaving their house (think any of the signature $Disney(DIS.US$ on the Disney+ streaming service or the prestige shows that everyone from $Netflix(NFLX.US$ to HBO seem to produce in ever-increasing numbers), it's simply a higher bar to get people to go to theaters.
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超Ape : Appreciated your long post buddy. But full of shit haha. I’m still holding on to my 4xxx shares of amc. Woohoo!
超Ape : go read more on how this traditional business has pushed its means to revenue creation and exploring exciting ways for client engagement such as exclusive NFT and more. That’s why amc rocks because it’s learning not only to survive but to excel
Questionable Invts : Never know AMC might get caught out by Amazon One Day.
Oishiii : blah blah blah
101516486 : Your home has a kitchen so why you still go out to restaurants and eat ??????
ur wifes boyfriend Questionable Invts: you know why that rumor keep some popping up,?
styleomileo : Good analysis and only if people would listen
PeefBork styleomileo: its so sad any post that downplays their beloved ‘squeeze’ will be treated as shill or fud. these sheep i mean apes sorry are lost
haroit27 PeefBork: they are delusional. i been watching them waiting for squeeze like jesus resurrection since $70, $50 until now. they just refuse to hear.